Pound Sterling forms thin red line before chieftains of Threadneedle street
The Pound Sterling (GBP) trades marginally lower on Thursday just above the 1.2700 mark against the US Dollar (USD), ahead of the Bank of England (BoE) policy meeting, a key event for GBP pairs.
The BoE sets interest rates in the UK, which influence demand for Pound Sterling. Higher interest rates tend to appreciate the Pound by attracting more foreign capital inflows; the opposite is true of lower interest rates. The decisions of the BoE, therefore, heavily impact the Pound. Read more...
GBP/USD Forecast: Dovish BoE hold could weigh on Pound Sterling
GBP/USD stays relatively quiet and fluctuates in a tight channel above 1.2700 in the European morning on Thursday. The Bank of England's (BoE) monetary policy announcements could trigger the next big action later in the session.
The BoE is widely expected to leave the policy rate unchanged at 5.25% following the June policy meeting. Because there won't be a post-meeting press conference, investors will scrutinize the policy statement and the vote split. Read more...
GBP/USD Forecast: Pound Sterling stabilizes above key support after inflation data
GBP/USD gained traction in the European session on Wednesday after closing slightly above 1.2700 on Tuesday. The pair's technical outlook suggests that buyers could remain interested while 1.2700 holds as support.
The UK's Office for National Statistics reported on Wednesday that inflation in the UK, as measured by the change in the Consumer Price Index (CPI), declined to 2% on a yearly basis in May from 2.3% in April. This reading came in line with the market expectation. In the same period, the core CPI, which excludes volatile food and energy prices, rose 3.5%, at a softer pace than the 3.9% increase recorded in April. Read more...
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